Jason,
Thanks for the tip. I should have seen that one. I tried making the change however I get the same issue (Code below). The correct value appears to be stored as this can be seen in the admin user view details.
Mark.
<option value="ACT" <?php if (!(strcmp("ACT", (isset($_GET['valid'])?ValidatedField("usersUpdate","UserState"):$row_WADAusers['UserState'])))) {echo "selected=\"selected\"";} ?>>Australian Capital Territory</option>